Understanding Credit and Debt Management

What is a credit score?

• A measure of your income

• A numerical representation of your creditworthiness

• A list of your monthly expenses

• A type of bank account

Which of the following is NOT included in a credit report?

• Your credit card balances

• Your employment history

• Your favorite hobbies

• Your payment history

What is the main purpose of comparing credit cards?

• To find the one with the highest interest rate

• To choose the card with the best rewards and lowest fees

• To select the card with the most complicated terms

• To find the card with the least amount of credit limit

If a credit card has an annual interest rate of 18%, what is the monthly interest rate?

• 1.5%

• 2%

• 1.8%

• 0.18%

Which of the following strategies can help you get out of debt?

• Ignoring your bills

• Making only the minimum payments

• Creating a budget and sticking to it

• Taking on more debt

What does APR stand for in terms of credit cards?

• Annual Percentage Rate

• Annual Payment Rate

• Average Payment Rate

• Annual Penalty Rate

How often can you get a free credit report from each of the three major credit bureaus?

• Once a month

• Once a year

• Twice a year

• Every six months

If you have a credit card balance of $1000 and an interest rate of 12% per year, how much interest will you owe after one year if no payments are made?

• $100

• $120

• $12

• $10

Tags

CCSS.7.RP.A.3

What is the term for the maximum amount you can borrow on a credit card?

• Credit limit

• Credit score

• Credit report

• Credit interest

Which of the following is a benefit of having a high credit score?

• Higher interest rates on loans

• Easier approval for loans and credit cards

• More frequent credit report checks

• Increased monthly expenses